Question
Which of the following ratios measures the banking
sector’s ability to absorb shocks arising from financial and economic stress?Solution
The Capital Adequacy Ratio (CAR), also called the Capital to Risk-Weighted Assets Ratio (CRAR), measures a bank’s capital in relation to its risk-weighted assets. • It reflects the buffer available with banks to absorb potential losses and continue operations in times of financial or economic stress. • Formula: • CAR=Tier I Capital + Tier II Capital / Risk Weighted Assets • Higher CAR → stronger ability of banks to withstand shocks. • RBI mandates minimum CAR levels in line with Basel norms to maintain financial stability. Thus, CAR is the key ratio that indicates the resilience of banks against risks.
Neither the miseries _____ the situation _____ changed.
Directions: Complete the sentence with the appropriate word(s).
The new educational policy aims to address not only the challenges __________ ...
The young entrepreneur was determined to ____________ her business idea, despite facing numerous setbacks and challenges along the way.
Directions: Below given sentences contain two blanks. Fill in the blanks with appropriate words.Â
The government is taking measures to _______...
Choose the correct word(s) to fill in the blank.
It was my sister’s birthday and all ____ us ____ the family wanted to buy a gift _____ her.
Despite the uninspiring weather, the city was ……….. with a youthful ………..
Fill in the blank with the most appropriate word.
The old man will die….you look after him.
The hotel was not too expensive,_______Â
Choose the most suitable option to fill in the blanks in the sentences below.
The project became so expensive that we had __________.
- The following sentences contains a blank. Choose the most appropriate word or phrase from the given options to complete the sentence grammatically and cont...
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